China is set to have the longest-serving central bank chief of major world economies, following reports that Zhou Xiaochuan has been asked to stay for two more years to oversee reforms.

Mr Zhou, 65, was expected to step down in March after more than a decade in the job, having reached the mandatory retirement age. However, Hong Kong-based newspapers reported yesterday that his term would be extended for one to two years to ensure a smooth transition under China’s new leadership.

This will make Mr Zhou, appointed to the role in December 2002, the longest-serving of the current batch of central bank chiefs in the G20. Bank of Russia chairman Sergei Ignatyev has been in the role since March 2002 but is set to retire in the middle of this year.

Economists welcomed Mr Zhou’s extension because of his pro-market reform stance. Last year, the People’s Bank of China allowed banks to raise and lower their own lending and deposit rates by a greater margin than the benchmark rate. The PBOC says it will “steadily push forward" with this reform.

Still, the market is waiting for a number of other key economic appointments, expected at next month’s People’s Congress. China’s head of its securities regulator, its top economic planning official, and the commerce and finance ministers are all due to retire.

Nomura economist Zhang Zhiwei said: “This is a transition year and the leaders need time to establish their authority. I think significant reforms will probably not be introduced until the second half of this year or next year."

Mr Zhou’s eventual successor is tipped to be Xiao Gang, the chairman of the Bank of China, a commercial lender.